You are currently viewing Africa needs to increase digital infrastructure tenfold to meet demand — Dr. Ayotunde Coker

Africa needs to increase digital infrastructure tenfold to meet demand — Dr. Ayotunde Coker

Dr. Ayotunde Coker has had an unusual career. Standing at 6.6 feet tall, he’s not your average executive. From shaping technology strategy in vehicle manufacturing to pioneering internet banking in the UK, and navigating the dotcom boom leading an internet company, Dr. Coker has consistently pushed boundaries. His journey spans roles as Global Applications Director at British Petroleum, Chief Technology Officer for UK Criminal Justice, and Group IT Director for the Ministry of Justice. Returning to Nigeria, he served as Group CIO at Access Bank before leading a payments company across the Middle East and Africa. For eight years, he steered Rack Centre as CEO, then moved to lead Open Access Data Centres, while doubling as the founding Chairman of the Africa Data Centres Association. Dr. Coker is easily one of Africa’s most recognizable data center executive and in this exclusive, he discusses data centers, and the opportunities for digital infrastructure in Africa.

This interview has been edited for brevity and clarity.

 

Journey to today: experiences as seasoned executive in Asia, UK, US and Africa

My African journey began in 2009 upon returning to Nigeria, where I was born in Lagos, specifically in Ijebu Ode. Educated at King’s College, I earned a Shell scholarship to study mechanical engineering at the University of South Wales. There, I transitioned into Total Quality Management and later Six Sigma, popularized by General Electric.

Following a postgraduate degree at Cranfield University in Packaging Systems Engineering, I advanced to Ford of Europe, crafting the technology strategy for manufacturing the Ford Mondeo. Transitioning to consulting with Capgemini, I contributed to global transformations and led projects like the inception of the first Internet bank, Egg Bank. Consulting fuels rapid leadership, innovation, and trajectory-setting—a hallmark of my career. Throughout the 1980s and 1990s, I specialized in transforming businesses and pioneering innovation.

After Egg, I joined BP around 2005 as Global Applications Director, overseeing worldwide applications management. Partnering with a colleague leading infrastructure transformation, we consolidated BP’s 500 data centers into three mega centers outsourced to REITs in the US, UK, and Singapore—a challenging yet rewarding endeavor. My career then led me to public service as CTO for UK criminal justice IT systems and later as Group IT Director for the Ministry of Justice, where I modernized the criminal justice system with pioneering digital solutions. I spearheaded the integration and enhancement of technology across the entire criminal justice system—from police operations to court proceedings, prisons, and probation. At the time, video conferencing was challenging due to network limitations, despite platforms like Skype and WebEx being available. Witnessing a wheelbarrow full of paperwork at the Crown Prosecution Service for a single case inspired me to propose a digital transformation. Drawing from Flickr’s innovation, we initiated digitization of case files and introduced virtual courts. Implementing video systems in police stations and courts required judges to adapt to computer usage swiftly. We also streamlined file sharing with document management systems. Our successful pilot in London prompted legislative changes to permit video usage in court proceedings, significantly enhancing system efficiency and effectiveness.

My career had taken me across UK and Asia, consulting for major firms like Merrill Lynch and JP Morgan, and working in financial hubs like New York and Chicago. However, my experience in Africa was limited until Access Bank approached me from the UK. Seeing it as an opportunity to apply my transformation expertise to my country and continent, I accepted their invitation after a persuasive week in Nigeria. Tasked with aiding their ambitious growth from Nigeria’s 13th largest bank to a continental force, I embarked on a challenging yet fulfilling journey of financial services transformation.

My return to Africa marked a new chapter, and led to my current role as CEO of Open Access Data Centres (OADC). Here, we’re reshaping the industry with a pan-African data ecosystem, demonstrating the power of transformative leadership in digital infrastructure.

 

Experience as first-time CEO

Being a CEO is a continuous learning process where you navigate diverse responsibilities—from legal and commercial management to technology and law. My training at Cap Gemini equipped me with comprehensive commercial management skills crucial for this role. Consulting for firms like JP Morgan taught me invaluable insights into banking, highlighting the reciprocal nature of consultancy. I learned a valuable lesson from my boss: “A consultant can tell you the time when you give them your watch, but a great consultant will also suggest ways to improve it.” This underscores the importance of offering not just information but precise, actionable insights that drive innovation and keep businesses competitive.

Transitioning to CEO requires a broad skill set—a “T-shaped” approach—where deep expertise combines with a wide-ranging knowledge base. Adaptability is essential; even without a financial background initially, understanding enough to engage with CFOs is crucial.

Stepping into a CEO role is a significant leap, particularly in dynamic environments where creating the future is paramount. It’s about hiring based on core competencies and continuously expanding skills. Each CEO level—similar to political leadership progression—brings unique challenges, demanding swift adaptation and effectiveness within the first six months.

 

Significance of digital infrastructure in Africa, and broader implications

The importance of digital infrastructure is profound, especially for Africa. Connecting the continent is essential. Digital infrastructure includes several layers, starting with data centers. These are crucial for holding and managing data locally, reducing latency issues when data centers are abroad. These data centers support networks, cloud services, and the heavy lifting required for digital activities.

According to research from the World Bank and the International Telecommunications Union, a 10% increase in broadband penetration can add up to 2.5% to a country’s GDP. The impact is even more significant in emerging economies. However, it’s not just about broadband penetration; broadband adoption is where the true economic benefits lie.

In Africa, having broadband without local data centers means dealing with latency issues despite being in a global digital economy. Data centers must be built locally to handle this, providing enterprises with high-quality, well-connected, carrier-neutral facilities. This has been a key focus in Nigeria, with efforts to build and innovate in data centers to meet these needs.

Broadband adoption transforms communities, enabling the flourishing of education, healthcare, and commerce. Nigeria, for example, has seen a significant increase in internet connectivity, with millions now having broadband access. This connectivity is essential for meaningful broadband usage, which is more prevalent in urban areas but is steadily spreading.

Digital infrastructure development in Africa involves building connectivity and cloud services locally. Companies like ours are working to build data centers and networks, enhancing Africa’s digital landscape. The impact of building a data centers extends beyond its immediate function; it stimulates the local economy by creating jobs and driving economic activity.

Investing in digital infrastructure has a multiplier effect on the economy. For instance, spending $10 million on building a data centers can generate significant economic benefits, potentially up to 50 times the initial investment. This economic activity includes construction, engineering, design, and operations, all contributing to the local economy.

The economic impact of digital infrastructure development is substantial, with potential benefits reaching billions of dollars. This underscores the importance of digital infrastructure in transforming Africa’s economies and improving the quality of life for its people.

So, to address your original question, digital infrastructure encompasses data centers, networks, and cloud services. Its importance for Africa lies in its potential to drive economic growth, improve connectivity, and transform communities through better access to technology and services.

 

Do we have enough data centers and subsea cables in Nigeria and Africa? Do we really need more?

Subsea cables connect at different points. The west coast of Africa is now well-served, especially with the big cable coming in from the 2Africa project, which has many landing points. This connects the world to Africa and Africans to the world from a subsea perspective. The East Coast also has some connections and routes going around the Red Sea, facing out to Asia, the Americas, and Europe. However, the real challenge is getting penetration inland from the sea; there is still much work to be done to achieve this.

That is why we see continued investments in building this infrastructure. Fiber is essential, but the goal is to get broadband to people in any way possible. Companies like SpaceX provide broadband solutions that need to be connected to some fiber to enable distribution. Investments and innovations are flowing into Africa to improve fiber broadband access, which is great.

However, we do not have enough data centers. Xalam Analytics show that Africa has 1% of the global digital infrastructure while having 17% of the world’s population and 4% of global GDP. According to our analysis at the Africa Data Centres Association, which I chair, there are about 100 data centers of reasonable scale. While there are some hyperscale data centers in Africa, Nigeria still doesn’t have one yet. However, we expect significant progress in the next 12 months, with new data centers being launched.

Africa needs to increase its digital infrastructure tenfold to meet demand. Closing the digital gap is essential to closing the prosperity gap. We must build numerous data centers to bring data storage and processing closer to Africa, driving consumption and transforming lives and businesses. Our current infrastructure is vastly insufficient; analysis shows we need around 700 data centers but only have about 100.

Addressing the last-mile connectivity and the slow growth of data centers involves overcoming various challenges. The lack of density in data centers and other digital infrastructure presents opportunities for operators. Building the proper policy framework to enable scale and growth is crucial. Governments typically don’t build these infrastructures directly; instead, the private sector drives this push across Africa, leveraging ICT.

AI also presents significant opportunities. The demand for AI compute power is growing, and we need the right kind of hyperscale facilities with adequate connectivity. AI is latency-sensitive, so the compute power must be close to the point of use. Building AI capabilities locally is essential, as it requires real-time data processing. This need will drive more AI computing into the data centers we are building.

Overall, Africa has immense opportunities for local and non-African operators to build additional infrastructure layers. We can support the continent’s digital and economic growth by addressing these gaps.

Development of cloud services in Africa, especially the importance of local cloud infrastructure

The discussion about Africa’s cloud and digital infrastructure highlights two key points. Firstly, global cloud providers and local companies coexist, with local companies carving out niches, while global providers offer different cloud services. It’s crucial to support the growth of local companies to ensure they can compete and expand. Africa relies heavily on imports for key technologies, which incurs significant customs duties and costs. Reducing these barriers and fostering local manufacturing could help strengthen the local digital economy. This situation isn’t unique to Africa—other regions like Europe and the US face challenges similar to currency strength and input costs.

Secondly, the integration of global cloud capabilities with local efforts is vital. Encouraging private cloud players to invest in Africa requires the right infrastructure. Countries need to balance growing local capabilities with attracting international investments. This isn’t just an African issue; it’s a global one, as seen in places like North Carolina, where companies successfully integrate local and global cloud services. The days of relying solely on oil revenues are over, and Africa must leverage its large population and technology to unlock economic potential. Building local coding and technology capabilities will enable Africa to participate more fully in the global digital economy.

Finally, the concept of data sovereignty in Africa is crucial. By establishing data centers and maintaining control over data, African countries can become data exporters, serving surrounding regions and attracting significant investments. This approach could lead to substantial economic opportunities like European data sovereignty models. Creating a supportive environment for data centers and cross-border data services will be a game-changer for Africa’s digital future.

  

Silver bullet to address all digital infrastructure issues

I would say capital. The availability of capital is crucial, and it impacts capacity, capability, and other factors. Securing capital can trigger a cascade of positive developments. That’s why I’d focus on capital, as its systemic impact can address multiple issues simultaneously. So, my choice would be capital because it touches many critical points.